What Is a Sweetheart Deal?

A sweetheart deal is an arrangement between two or more parties, usually in business and/ or employment, that is agreed to because all the parties believe it to be in their best interests. The terms of the sweetheart deal benefit all the involved parties and often involve reduced costs and/or other associated incentives.

For example, two companies negotiating a joint venture may enter into a sweetheart deal. This could involve one company providing the other with discounted materials, or in return for the discounted rate, the other company could pay an additional service fee. In the long run, both companies benefit from the arrangement as they are able to work together more efficiently and save costs.

In the job market, a sweetheart deal often refers to an arrangement made between an employer and an employee. A sweetheart deal could involve an employee receiving reduced hours or wages in exchange for additional benefits such as medical insurance or other perks. While these arrangements may not be ideal for the employee in terms of wages, they often provide additional benefits that people may not otherwise be able to afford.

When entering the job market, it is important to be aware of sweetheart deal arrangements and the rights they provide you with, as well as any potential risks. Be sure to thoroughly review and understand the arrangement before signing on to any deal.